Use the information for the question(s) below. Shepard Industries is evaluating a proposal to expand its current distribution facilities. Management has projected the project will produce the following cash flows for the first two years (in millions).

Year

1

2

Revenues	1200	1400
Operating Expense	450	525
Depreciation	240	280
Increase in working capital	60	70
Capital expenditures	300	350
Marginal corporate tax rate	21%	21%

The incremental unlevered net income of the Shepard Industries project in year one is closest to:

		$510 million.
		$403 million.
		$600 million.
		$470 million.